Tokenized U.S. Treasury instruments and money-market funds have grown into the largest segment of the onchain real-world asset market. Allium’s crosschain dataset placed the category at $16.3 billion on July 15, 2026, up from $10.8 billion one year earlier. Treasury-linked products now account for more than half of the $29.5 billion in real-world assets tracked by Allium, moving the sector well beyond the $14 billion threshold reached earlier in the year.
The category includes several structures, from tokenized fund shares to notes backed by short-term government securities and reverse repurchase agreements. Their common proposition is the ability to keep dollar-denominated capital onchain while earning income from traditional fixed-income assets. Transfers can occur outside conventional banking hours, although subscriptions, redemptions and investor eligibility remain governed by each product’s legal and operational framework.
Large Products Continue to Anchor the Market
Circle’s USYC remains one of the sector’s largest individual products, with RWA.xyz showing approximately $3.01 billion in total asset value on July 29. BlackRock’s BUIDL stood at roughly $2.61 billion, while Ondo’s USDY held about $2.15 billion. The three products collectively represent more than $7.7 billion in tokenized fixed-income exposure, although their legal structures, eligible investor groups and liquidity mechanisms differ.
USYC represents an interest in a Cayman Islands mutual fund that invests primarily in short-term Treasury assets and government-backed reverse repurchase agreements. BUIDL seeks current income while prioritizing liquidity and principal stability, while USDY is a tokenized note secured by short-term Treasuries and bank deposits for eligible non-U.S. participants. Similar portfolio exposure does not make the products operationally interchangeable, particularly when redemption rights, transfer restrictions and regulatory treatment are considered.
Other institutional products have experienced meaningful changes in size. The Janus Henderson Anemoy Treasury Fund, or JTRSY, currently holds approximately $881 million and invests directly in Treasury bills with remaining maturities of up to three months. Franklin Templeton’s BENJI represents about $725 million in shares of a U.S.-registered government money-market fund. Changing balances across individual funds show that sector growth does not translate into uniform inflows for every issuer.
Distribution is also spreading across multiple settlement networks. BENJI is issued across Stellar, Base, Arbitrum, Ethereum, Avalanche, Polygon and Aptos, while JTRSY has supply across Ethereum, Stellar, Monad, Plume and several additional chains. Multichain issuance broadens access but can fragment liquidity and add bridge, custody and contract-management dependencies. Market totals can also vary across analytics platforms because providers apply different classifications to distributed assets, represented assets and underlying fund structures.
Traditional Market Infrastructure Moves Into Production
The expansion is occurring alongside production-level testing by established financial-market operators. On July 15, DTCC converted securities held at the Depository Trust Company into tokens and used them in live production transactions involving more than 30 financial and technology firms. The workflows included a Treasury and repurchase-agreement delivery-versus-payment trade, securities lending, collateral pledging and equity settlement. Goldman Sachs, J.P. Morgan, BlackRock, Circle and State Street were among the participants.
DTCC processed the transactions across its private Besu network and the public Canton Network, ahead of a planned commercial launch of its tokenization service in October. The tokens functioned as digital representations of securities retained within DTC’s custody framework, preserving the associated ownership rights and investor protections. This model connects blockchain settlement with existing regulated custody rather than moving the underlying securities outside traditional market infrastructure.
Tokenized Treasury products offer faster transfers and programmable collateral, but the tokens remain dependent on offchain institutions. Custodians must hold the underlying securities, issuers must maintain accurate supply records and cash redemptions may still require transactions during conventional banking or securities-market hours. Onchain transferability does not remove custody, liquidity, regulatory or smart contract risk.
These instruments also serve a different function from conventional stablecoins. Stablecoins are primarily designed as payment and settlement assets maintaining a stable reference value, while tokenized Treasury products seek to pass income from government securities or money-market portfolios to eligible holders. Yield introduces an investment-product structure that can carry securities-law restrictions, minimum investment requirements and identity checks absent from many general-purpose stablecoin transfers.
The market’s movement past $16 billion shows that tokenized government debt is becoming a material component of digital-asset infrastructure. Its next phase will depend on more than issuance totals, including redemption performance, secondary-market liquidity, collateral adoption and integration with regulated settlement systems. The sector has established scale, but durable maturity will be measured by how reliably tokenized claims operate during stressed markets and large institutional withdrawals.